FG releases N13.89 billion for Payment of Accrued Pension Rights to 2022 Retirees
The Federal Government of Nigeria has released N13.89 billion for payment of accrued rights of retirees of treasury funded ministries, department and agencies (MDAs), under the Contributory Pension Scheme (CPS).
This was disclosed in a “Press Release” by the National Pension Commission (PenCom) on 05 January 2023.
PRESS RELEASE by PenCom
FEDERAL GOVERNMENT RELEASES N13.89 BILLION FOR PAYMENT OF ACCRUED RIGHTS FOR CONTRIBUTORY PENSION SCHEME (CPS) RETIREES WHO RETIRED IN THE YEAR 2022
The National Pension Commission (PenCom) is pleased to inform all its stakeholders, particularly retirees of Treasury-Funded Ministries, Departments and Agencies who retired in the year 2022, that the Federal Government has released the sum of N13.89 billion for the payment of their Accrued Pension Rights. The Accrued Pension Rights represent an employee’s benefits for the past years of service up to June 2004, when the CPS came into effect.
Accordingly, PenCom is processing remittances into the various Retirement Savings Accounts of the affected retirees, and their Pension Fund Administrators will notify them in due course.
Finally, PenCom appreciates the efforts of His Excellency Mr. President for his untiring support and commitment to the implementation of the CPS and ensuring the welfare of retirees.
Signed
PenCom Management
The Accrued Pension Rights represents an employee’s retirement benefits from the date of 1st appointment till when the contributory pension scheme commenced. For employees of the Public Service of the Federation, where the scheme is unfunded, accrued rights are recognized in the form of an amount acknowledged through the issuance of Federal Government Retirement Benefits Bonds by the Debt Management Office in favour of the employees and the bond issued shall be redeemed upon the retirement of the employee in accordance with the provisions of Pension Reform Act, and the amount so redeemed shall be added to the balance of the retirement savings account of the employee.
Unfortunately, PenCom did not disclose the months of retirement in 2022 which the N13.89 billion covers, but PenCom noted that it is processing remittances into the various Retirement Savings Accounts of the affected retirees, and their Pension Fund Administrators will notify them in due course. Based on estimates, it’s very unlikely that the N13.89 billion will cover for all retirees of Treasury-Funded MDAs who retired in the year 2022. The benefit of disclosing the months it covers is that retirees whose retirement months are not covered wont have to stress themselves contacting their PFAs to confirm, by not disclosing months covered, all retirees who retired in 2022 will have to contact their PFAs to know if they are covered.
Usually, once Federal Government releases accrued rights, the amount for each retiree is transferred into his/her Retirement Savings Account (RSA) with the Pension Fund Administrator (PFA). The concerned Retirees thereafter can contact their Pension Fund Administrators (PFAs) for confirmation, documentation and discussions on the processing of their Lumpsum and programmed withdrawal or Annuity.
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